Market Overview: Prom/Tether (PROMUSDT) on 2026-01-07

Summary
• Price declined 23.7% in 24 hours, hitting key support levels.
• Volume spiked during the breakdown, confirming bearish momentum.
• RSI and MACD show overextended bearish momentum, signaling potential near-term exhaustion.
• Bollinger Bands widened significantly, highlighting heightened volatility.
• A strong bearish engulfing pattern formed at the high of the session.

At 12:00 ET on 2026-01-07, Prom/Tether (PROMUSDT) opened at $7.693, reached a high of $7.862, and closed at $6.851, having traded a low of $6.829. Total volume amounted to 61,128.37, with $433,490.04 in notional turnover over the 24-hour window.

Structure & Formations

The session featured a sharp bearish reversal from the $7.862 high, forming a large bearish engulfing pattern that confirmed a breakdown. Key support levels were observed at $7.66 and $7.50, with a critical breakdown below $7.20 marking a new psychological threshold. A doji formed near $7.30, hinting at indecision ahead of the steep drop.

Indicators and Momentum

MACD showed a bearish crossover with a strong negative histogram, reinforcing downward momentum. RSI dropped into oversold territory below 30, suggesting potential for a near-term bounce. However, the speed and depth of the decline point to possible exhaustion at current levels.

Volatility and Bollinger Bands

Volatility expanded significantly, with Bollinger Bands widening from $7.60 to $7.85 in the morning to $6.80–$7.20 by the close. The price closed near the lower band at $6.851, consistent with overbears holding control. The contraction in the early session preceded a breakout, which was confirmed by the breakdown and heavy volume.

Volume and Turnover

Volume surged during the breakdown below $7.40, aligning with a sharp decline in price. Turnover remained elevated throughout the session, confirming the strength of the bearish move. Price and turnover were in alignment during the sell-off, suggesting conviction among participants rather than profit-taking.

Fibonacci Retracements

On the 5-minute chart, the breakdown moved past the 61.8% Fibonacci level of $7.45, suggesting continuation into the 78.6% area of $7.23. On the daily chart, the $6.85 level corresponds to the 78.6% retracement of the recent bullish leg, hinting at a possible pause or consolidation before further downside.

The decline appears to have oversold RSI and exhausted key resistance, suggesting a potential pullback in the next 24 hours. However, with liquidity thinning below $7.00, a breakdown below this level could trigger deeper bearish pressure. Investors should remain cautious and monitor volume during any bounce for signs of conviction.